Apartment Building Insurance

Quality Apartment Building Insurance in Massachusetts

Your apartment property is a big financial investment and it can yield a significant financial reward. However, there are significant risks. If you don’t have the right apartment building insurance, you could end up paying for losses out-of-pocket. Property damage combined with loss of income could be catastrophic for your business.

LoPriore Insurance is an independent insurance agency with insurance that fits your lifestyle. Thus, if you own an apartment building in the Greater Boston area, our agents can help you find the policies you need to keep your investment safe from financial loss.

 

WHAT IS IT

Apartment building insurance is a customized insurance package that protects apartment building owners from property damage and liability risks associated with owning and running the apartments.

WHY DO I NEED IT

Owning a residential property comes with a variety of risks. Besides damage to the property itself, an apartment building owner needs to be protected from liability risks, loss of rental income, and other dangers.

WHO NEEDS IT

Residential building owners need apartment building insurance to get a variety of types of coverage to protect against financial risks.

Apartment Building Insurance Coverage Details

Apartment building ownership is a business, and owners need multiple types of commercial insurance policies to get the coverage they need for protection against various financial risks. Further, apartment building owners typically require commercial property coverage and commercial liability coverage. There are other optional policies that help protect against additional losses.

Commercial Property Coverage

Commercial property insurance protects against damages to the buildings and structures within your apartment complex. This coverage includes apartment building(s), and other structures like garages, swimming pools, fences, storage space, office buildings, and common areas. Further, coverage extends to additions or construction completed or in-progress and business personal property used to maintain the building or grounds.

Commercial property insurance is subject to a deductible. The amount of your deductible is determined by a variety of factors in your coverage including premiums and the specific terms detailed in your policy.

Commercial General Liability Insurance

As the owner of an apartment building, you’re responsible (liable) for losses that occur on your property. Commercial liability protects you against claims of bodily injury or property loss or damage by third parties within the complex. Indeed, third parties may include other tenants, visitors, repairpersons, delivery persons, or other people that have a valid reason to be on the property.

Some of the most common incidents covered by commercial general liability for apartment building insurance includes:

  • Theft
  • Slip and fall type injuries
  • Water damage
  • Property damage
  • Lastly, unlawful eviction

Loss of Income Coverage

When rental income is your livelihood, serious property damage can be catastrophic. If your apartment building is damaged so severely that it’s temporarily uninhabitable, you won’t receive rent. Income loss coverage reimburses you for the rent you miss with damage and repairs.

Enhancements And Optional Coverage for Apartment Building Owners

Quality Apartment Building Insurance in Massachusetts
  • Equipment Breakdown (Boiler and Machinery Coverage): A policy that covers damage and loss of income due to a breakdown of equipment or mechanical systems.
  • Commercial Umbrella Insurance: A policy that provides excess liability coverage that exceeds the limits of your existing coverage. Commercial umbrella insurance picks up when your liability policy’s limits are exhausted.
  • Business Owner’s Policy (BOP): This policy conveniently bundles commercial property, commercial liability, and loss of income coverage into one policy designed for small businesses.
  • Professional Liability Coverage (Errors and Omissions Insurance): A policy that provides protection against claims that you have financially harmed a third party with your negligence or errors.
  • Worker’s Compensation Insurance: This policy is designed to protect your employees from work related illnesses or injuries. Indeed, Massachusetts law requires any business with employees to carry worker’s compensation insurance.
  • Lastly, Commercial Auto Insurance: Any vehicle used for a business can be considered a commercial vehicle for apartment building insurance. In fact, this policy covers automobiles owned by your property business like maintenance trucks or shuttle buses.

Precautions You Can Take to Avoid Lawsuits

Insurance policies reimburse you for financial losses after a covered event has occurred. There are also steps you can take to help avoid certain lawsuits from happening. Take these precautions to help protect your apartment complex from becoming the target of a lawsuit.

  • Purchase and maintain proper insurance. Lawsuits can be expensive even if they’re fraudulent or you win. Maintaining your insurance policies can protect you against these costs.
  • Take safety precautions. Safety measures like extra security, working fire alarms, and worker safety programs can help you avoid dangerous accidents and may even help lower your insurance premiums.
  • Communicate important information: Tenants must always be notified of important and changing information about your apartment building. Divulge anything considered dangerous to all tenants.
  • Keep your property in good condition. Poor maintenance can lead to dangerous conditions and leave you open to a liability lawsuit. Then, make sure you stay compliant with all required state and local safety regulations and don’t allow your property or building to fall into disrepair.
  • Lastly, prioritize security. When you own a residential property, you could be held liable for crimes that occur in the building or on the grounds. Maintain doors and locks. Taking extra measures like putting up security cameras could provide even more protection.

Frequently Asked Questions About Apartment Building Insurance

What are the most common risks apartment building owners face?

It's impossible to predict all the risks that might arise while running a residential property business. These are some risks that may occur within an apartment building complex.

  • Catastrophic property damage due to incidents like severe weather or fire
  • Theft or vandalism
  • Liability for third party injuries
  • Loss of rental income
  • Discrimination lawsuits
  • Invading the right to privacy
How is the cost of apartment insurance determined?

A variety of elements are used to figure out the individual cost of an apartment insurance policy. You may need to provide this information to your agent to help determine the cost.

  • The age and location of your building
  • Extra features like a swimming pool, fitness center, or clubhouse
  • The type of building and construction
  • The presence of up-to-date safety and security systems
Should I have a per building or per occurrence deductible?

The amount of your deductible is an important feature of your insurance policy. A per building deductible describes a set amount that you will pay for each building in the event of a covered loss. A per occurrence deductible allows you to pay one fee for all buildings affected. It's important to discuss these options with your agent to decide which is best for your personal needs.

Does apartment building insurance cover earthquakes or floods?

Earthquakes and floods aren't typically covered by apartment building insurance. However, if this is coverage you need, you can get additional policies that provide protection for these events.

What's the difference between landlord insurance and apartment building insurance?

The two policies provide similar types of coverage, but apartment building insurance adds additional coverage because you have multiple tenants on the property. An apartment building complex requires protection that covers employees, common areas, and additional security and liability concerns.

Learn More About Quality Apartment Building Insurance

If you are an apartment building owner in Massachusetts, you need the proper insurance to protect you. Our independent agents take the time to listen your unique needs and help you find the coverage you need for your unique business. Instead of trying to sell you huge commercial policies, we provide you with the coverage you need at prices you can afford. Get in touch to learn more about our policies, get answers to your questions, or get a quick quote for the policy you need. Indeed, our friendly agents are standing by to help you get the protection you need to get back to running your residential property business.

Have any Question? Ask us anything, we’d love to answer!

Related Items

    18749

    InsurLink

    //